Consolidated Appropriations Act, 2023: Health Provisions

The Consolidated Appropriations Act (CAA), 2023, funds US government operations for fiscal year (FY) 2023, providing roughly $1.7 trillion in spending: $772.5 billion in nondefense discretionary spending and $858 billion in defense spending. It also includes policies that extend beyond appropriations in many different areas.

Many healthcare policy provisions were included in Division FF of the bill’s text. Highlights include the following:

• Waiving the 4% Medicare Statutory Pay-As-You-Go Act of 2010 (PAYGO) cuts for 2023 and 2024
• Partially mitigating provider payment cuts under the Medicare Physician Fee Schedule (PFS) for two years
• Extending some current telehealth waivers and flexibilities related to the COVID-19 public health emergency (PHE) for two years
• Extending the Advanced Alternative Payment Model (APM) bonus for one year, but at a lower bonus payment rate of 3.5%
• Providing a two-year extension of the Hospital at Home waiver
• Addressing mental health and substance use treatment
• Decoupling the Medicaid continuous coverage requirement from the COVID-19 PHE
• Making additional changes in Medicaid coverage policies.

The Senate passed the CAA on December 22, 2022 and the House of Representatives will vote Friday morning, December 23. President Biden signed CAA, 2023 on December 29, 2022. The bill is now designated as Public Law 117-328. Read on for a summary of key health-related provisions in the CAA 2023.

Click here to download the detailed summary of the key provisions in the CAA.